HC Deb 25 October 1979 vol 972 cc296-7W
Mr. Rooker

asked the Secretary of State for Social Services what are the income limits for payments of national insurance contributions for 1979–80; and what would be the extra revenue if these limits were abolished.

Mrs. Chalker

The earnings and profits limits for national insurance contribution liability for 1979–80 are:

£
Class 1
weekly lower earnings limit 19.50
weekly upper earnings limit 135.00
£
a year
Class 2
(flat rate for the self-employed)—exception from liability may be granted where earnings from 6 April 1979 to 5 April 1980 are expected to be below 1,050
Class 4
(earnings.related for the self-employed)—payable on profits or gains between 2,250 and 7,000

If the class 1 and 4 limits were abolished, the extra revenue for 1979–80, including the surcharge on class 1 contributions, would be £730 million on the assumptions used in the Government Actuary's report on the 1979–80 contribution rates, Cmnd. 7403. It is not possible to give an estimate of the effect of removing the lower limits, since it is not clear what contributions structure is envisaged.